Cars24 Cuts FY26 Net Loss by 19%, Revenue Declines 18%

Used car platform Cars24 has reported a 18.7% reduction in its net loss for the fiscal year ending March 2026, bringing it down to ₹441.1 crore from ₹542.7 crore in the previous year. This improved bottom line was achieved as the company's operating revenue fell by 18.3% to ₹5,091.7 crore.

The decline in revenue was primarily driven by an 18.3% drop in sales of products, which generated ₹4,438.8 crore. However, revenue from services more than doubled to ₹205.6 crore. The company's total income, including other income, reached ₹5,220 crore.

Cars24 had previously announced achieving adjusted EBITDA profitability for the first time in the fourth quarter of FY26, attributing the gains to AI-driven efficiencies and growth in its core businesses. The company is actively investing in AI, with plans to allocate $20 million to its new AI Labs initiative.

Despite the revenue dip, Cars24 managed to reduce its total expenses by 17.8%. However, its cash and cash equivalents significantly decreased, falling by more than half to ₹377.1 crore, while total borrowings increased by nearly 17% to ₹958.6 crore.

The company, founded in 2015, is preparing for a potential initial public offering (IPO) within the next twelve months. Cars24 aims to leverage AI for operational improvements, including reducing inspection times and handling customer calls across multiple languages.